Forex Trading Forecast: Yen Carry Trade to Return?

October 7, 2008 by Trader Rich

Efforts to stabilize credit market could bring yen carry trade backThe yen carry trade is a risky one, and recently it has all but disappeared. However, with the efforts to stabilize the credit market in the U.S., things may be changing. The forex trading forecast may see a return of the yen carry trade in the relatively near future.

Bloomberg reports on what factors may bring the yen carry trade back into vogue:

“We’ve seen a dramatic capitulation of risk trades in the past few days,” said Robert Sinche, head of global currency strategy at Bank of America Corp. in New York. “If there are signs that conditions are beginning to stabilize, then we can see people return to risk trades and the yen will weaken.”